Review of Commission, Expenses, Disclosure norms etc. – Mutual Fund

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..... unds) Regulations, 1996 is enclosed for reference. B. Distributor Commission 1. In continuation to Paragraph A of SEBI circular No.SEBI/HO/IMD/DF2/CIR/ P/2018/137 dated October 22, 2018 , a carve out for upfronting of trail commission has been made for inflows through SIPs from new investors to the Mutual Fund Industry (to be identified based on PAN). The upfronting of trail commission shall be up to 1% payable yearly in advance, for a maximum period of three years. The paragraph A(4) of the above mentioned circular has been modified as under: A (4) The payment of upfront trail commission would be subject to the following: a. The upfronting of trail commission may be for SIP of upto ₹ 3000 per month, per scheme, f .....

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..... ), the term retail investor has been defined. Accordingly, it has been decided that inflows of amount upto ₹ 2,00,000/- per transaction, by individual investors shall be considered as inflows from retail investor . D. Total Expense Ratio (TER) Change and Disclosure SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2018/91 dated June 05, 2018 on Total Expense Ratio Change and Disclosure , is modified as under: 1. Paragraph C(i) of the aforementioned circular shall read as: AMCs shall prominently disclose on a daily basis, the TER (scheme-wise, datewise) of all schemes except infrastructure debt fund (IDF) schemes under a separate head Total Expense Ratio of Mutual Fund Schemes on their website and on the website of A .....

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..... owing proviso shall be included after Paragraph D(1): Provided that all schemes that are in existence for less than one year, other than overnight fund, liquid fund, ultra short duration fund, low duration fund, and money market fund as defined in Circular dated October 6, 2017 on Categorization and Rationalization of Mutual Fund Schemes, shall be exempted from the aforesaid disclosure. b. Paragraph D(5) of the circular shall read as: The disclosure should include other important fields such as scheme AUM (excluding overnight and liquid scheme) and previous day NAV. In case of AUM of overnight and liquid schemes, the closing AUM and the AAUM of the previous month has to be disclosed on AMFI website on daily basis. Howeve .....

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